We recently published a list of 10 Cheapest Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Zentalis Pharmaceuticals (NASDAQ:ZNTL) stands against other cheapest stocks that insiders are buying recently.
Why should we be interested in affordable stocks? Some investors like to look for cheaper stocks in order to diversify their portfolios, because these penny stocks often operate in different industries than larger businesses.
Some investors’ strategy is finding nascent companies with strong growth potential, which can bring high returns once the companies have grown. Even though penny stocks often carry higher risks and are more prone to market volatility, they also offer investors more room for growth.
What are some ways to assess cheap stocks that are worth investing in? While there’s no single simple or complicated rule that investors can follow to achieve secure results, some strategies can help. One strategy is to keep track of insider trading activity. Insiders or, in other words, people in high positions within companies, such as CEOs, CFOs, directors and other executives have valuable insights into the company’s strategic moves, plans, and initiatives. A CEO’s investment in a company’s stock can sometimes signal strong confidence in the company’s future.
While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
What are some of the most affordable stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the lowest average price per share.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization.
A biopharmaceutical researcher in a lab coat, observing a research sample through a microscope.
Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL)
Average price per share: $1.87
Market capitalization: $180.30 million
The ninth stock among the 10 most affordable stocks insiders have been buying recently is Zentalis Pharmaceuticals, a clinical-stage biopharmaceutical company engaged in the discovery and development of small molecule therapeutics targeting biological pathways of cancers. Among its leading oncology candidates is azenosertib (ZN-c3), an inhibitor of the tyrosine kinase Wee1. The company recently confirmed that azenosertib showcased significant progress in clinical trials for platinum-resistant ovarian cancer.
Over the last 30 days, four insiders, including the company’s CEO, and CMO, acquired a total of $223,413 worth of Zentalis Pharmaceutcials shares at an average price of $1.87 per share. Year-to-date, the stock gained 16.50% and is now trading at $2.53 per share. Over the past 12 months, its shares declined 81.69%.
For the third quarter of 2024, Zentalis Pharmaceuticals reported a net loss of $40.16 million, which compares to a net loss of $55.53 million in the same period a year ago. Basic loss per share from continuing operations was $0.56 compared to $0.79 in the same quarter of 2023.
According to the average rating of nine Wall Street analysts, Zentalis Pharmaceuticals is a “Moderate Buy”. The analysts have placed an average price target of $5.97, which is 135.97% higher than the previous price, as per data from TipRanks.
Overall, ZNTL ranks 9th on our list of cheapest stocks that insiders are buying recently. While we acknowledge the potential of ZNTL our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZNTL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
